CAD Falls as Oil Prices Lower on Monday

The Canadian dollar was slightly weaker against its U.S. counterpart in early trade on Monday, as crude oil prices fell.

At 8:48 a.m. ET (1348 GMT), the Canadian dollar was trading at C$1.3243 to the greenback, or 75.51 U.S. cents, below the Bank of Canada’s official close on Friday of C$1.3232, or 75.57 U.S. cents.

The currency’s strongest level of the session was C$1.3227, while its weakest was C$1.3278.

The loonie made a strong gain against the pound, which slid after British Prime Minister Theresa May said she was not
interested in Britain keeping “bits” of its EU membership.

The Canadian currency had hit its strongest in more than three weeks on Friday following surprisingly strong employment and trade data, before pulling back to end barely higher.

Oil fell 2 percent on Monday as signs of growing U.S. production outweighed optimism that many other producers, including Russia, were sticking to a deal to cut supplies in a bid to bolster the market.

The Bank of Canada is due to release a quarterly business outlook and loan officers survey at 10:30 a.m. ET (1530 GMT).

via Reuters

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza